The Reserve Bank of India is set to allow trading in bond forwards that long-term investors can use to manage their interest rate risk, the central bank said on Friday.

Many economies seem to be settling into a lower-rate environment. That’s in stark contrast with the Federal Reserve, which has to deal with volatile policies.

The Reserve Bank of India cut its policy rate for the first time in nearly five years as economic growth slows and inflation cools.

The Reserve Bank of India (RBI) cut its key repo rate for the first time in nearly five years on Friday and signalled a less restrictive policy approach ahead, as it seeks to provide stimulus to the sluggish economy.

The Reserve Bank of India has cut its key interest rate for the first time in nearly five years, as cooling inflation has offered room to stimulate the slowing economy. The central bank set the real GDP growth forecast at 6.